Hi, it’s Greg from Retirement Essentials, your helping hand when applying for the age pension. Generally speaking your home is exempt from the assets test. There are some exceptions for example if you have a very large or income producing property. If you are travelling and your home is not occupied it will continue to be assessed as your home for a period of up to twelve months, but you need to let centrelink know. If you are renting out your house it will be treated as an investment property. Please leave all questions in the “Comments” section.
does superannuation affect your amount of pension you get ,and do shares affect your pension amount fee brunjes
Hi Fred
Super and shares are all counted as assets and are definitely included when Centrelink calculates your eligibility for the Age Pension.
My husband and I are separated (not divorced). He lives in the family home and I live in our second home that was previously an investment property earning income. Both houses are in joint names. Will the house I’m living in be considered an investment?
Hi Debbie
We don’t believe that the house you are living in would be considered an investment property due to the circumstances you outlined. You will need to notify Centrelink of your separation, that the house that was once an investment property is now your principle place of residence. This evidence should then result in you being assessed as a homeowner for Centrelink age pension purposes if you meet the age pension eligibility requirements.
Hope this is of assistance.
I own an investment property and have built a granny flat on the back of the property. The main house is rented out and I’m now retired and living in the granny flat. I have been told the entire property is assessed as an investment property even though I’m living in the granny flat. If this is the case then is it correct that I would be assessed for the pension as a non-homeowner?
Hi Cilla. Your situation is a little more complex than normal and we aren’t aware of all the facts in your circumstance. Typically someone in this situation would be assessed as a homeowner as their name is on the title and there is only the one title covering the house and granny flat. The property would be their home not an investment. The person would also have to declare the rental arrangement via a form of rental certificate.
Hi James, I own and live in a duplex. My x husband lives in the other one rent free. The duplex is on one title. WILL Centrelink view this as an investment? I am 67 and considering retirement, have $530000 in super.
My x is on a disability pension and has lived there for years, he stoped paying me rent a few years ago when the mortgage was paid out. I also get a careers allowance for him.
Will I be able to get a part pension?
Hi Joy,
This should not count as an asset as there is only one title document and you are not receiving rental income.
You may need to complete a “Separated under one roof form” with you and your ex husband as you share a property but can show on this the separate living quarters, etc.
We are considering having a new house built on a block of land we own. We cannot get a bridging loan so we will need to sell our existing house to pay for it and will live on site whilst it is being built. The problem is that once we have sold our current home and have the capital in the bank, it will be included in our assets and will wipe out our partial age pension.
Could we set up some sort of trust account with the builder for the full cost of the new house and then draw down the staged payments as the build progresses? If not, what other options are there?
Hi Lynne, thank you for reaching out for assistance. The good news is that Centrelink do appreciate situations such as yours and actually give you a 12 month exemption whereby the amount of capital from the sale of your former home, which you intend to spend on building the new home, will not be counted as an asset. You may still see a change to your pension if you are being assessed based on your income rather then assets. Although the amount is exempt from your assets it is still deemed to earn income thus your total income earnings will increase which could cause a reduction in your pension.